Magazine article Marketing

Pizza Hut to Franchise Delivery Outlets in UK

Magazine article Marketing

Pizza Hut to Franchise Delivery Outlets in UK

Article excerpt

Pizza Hut is planning the first major high street franchise programme in its 25-year UK history.

The restaurant chain will raise its marketing spend by 10% to about [pounds]17m to support the franchising of its delivery outlets. The move is designed to meet the growing challenge from rival US chains moving into the UK delivery market.

US giant Papa John's, which extended its UK presence last November when it bought Perfect Pizza for [pounds]20m, has joined Domino's Pizza as a major rival to Pizza Hut in the UK market.

The company says it plans to open 150 delivery franchises in the first five years of the programme, including 20 to 30 in its first year.

The franchises are expected to focus on the largely untapped delivery market outside London and other urban areas. Franchises will run for about ten years. Operators will be expected to pay into a marketing fund for the programme to cover local print and door-drop marketing activity.

Pizza Hut, which operates in the UK as a joint venture between Whitbread and Tricon Restaurants International, currently has about 450 outlets in the UK. …

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